• The rate will increase to 17.2% in 2024
• Against 15.6% in 2023
• A rereading of the General Tax Code is planned
DIn a context marked by a persistent security crisis and the surge in prices of basic necessities, how does the transitional government intend to mobilize financial resources under the 2024 budget? Responses are provided through the circular letter, signed on June 5, 2023, by the President of the Transition, Captain Ibrahim Traoré, and sent to the Prime Minister, the presidents of institutions and ministers. The presidential document is clear and precise, the transitional government must seek the “nerves of war” wherever it is found.
The goal is to drive terrorists out of the country and take care of the needs of the population. Achieving this objective, according to the President of the Transition, requires an increase in the tax rate which must increase from 15% in 2023 to 17% in 2024 and settle at 20% (community standard) in 2026. In the circular letter, we can read that despite the performances recorded in recent years by the revenue authorities, the level of tax pressure still remains below the community standard of 20% minimum. The circular letter indicates that over the period 2024-2026, the tax pressure rate would be 17.2% in 2024, 17.8% in 2025 and 18.3% in 2026, compared to a forecast of 15.6% for 2023. Faced with this low rate, IB orders the government to work more to increase revenue mobilization to truly move towards the community standard.
Review certain tax exemptions
The 2024 budget will be devoted to rereading the General Tax Code with particular emphasis on the overall coherence of the text, improving its readability, simplification and facilitation of the methods of liquidation and payments of taxes and fees. , as well as the relaxation of certain tax sanctions. The government will also have to continue the process of computerizing land, with a view to modernizing its management, anything which will make it possible to have a reliable, up-to-date file of land owners, with all the consequences that the tax administration can draw from it. in terms of revenue collection and compliance with land regulations. There is also the continuation of controls with state structures, in order to ensure compliance with tax regulations; the application of the principle of rationalization of tax exemptions which undermine the mobilization of domestic resources in a context of security crisis.
In the midst of revising convention agreements with certain partner countries, it is now recommended that the tax administration be consulted before any convention or agreement with tax implications is signed; the continuation of the modernization of procedures initiated at the level of revenue authorities, in particular, the generalization of teleprocedures, the digitalization of tax procedures and the dematerialization of documents. A fight against fraud, forgery and corruption is planned, with a view to securing tax revenue.
Ambéternifa Crépin SOMDA
Boxed
Some reforms in sight for 2024:
-continued implementation of the reform of the contribution of micro-enterprises;
-the modernization of the investment evaluation system at the level of land one-stop shops;
-the operationalization of new tax services;
-the computerization of all customs offices and the review of the offices’ skills;
-strengthening non-intrusive control;
-the continued dematerialization of contract registration through the deployment of the E-registration module launched in 2022;
-the introduction of the obligation for large and medium-sized companies to submit their financial statements online (E-bundle);
-the continued implementation of the permanent census of taxpayers;
-the operationalization of census services;
-the establishment of taxation adapted to the digital economy;
-the continued generalization and monitoring of the effectiveness of the obligation to issue standardized invoices by all segments of taxpayers;
-the introduction of the certified electronic invoice;
-automation of the imposition of property taxes.
Source: Circular letter 2024
